Investors activity in the India's QSR sector

India's quick service restaurants are witnessing a flurry of deal activity, with fast-expanding chains drawing strong investor interest.

There is a strong interest in QSR chains by investors, and with caution. The investors expect long-term tailwinds for the sector, given that the food services market has a lot of headroom for growth.

A lot of deals are happening because QSR chains are trying to bulk up their physical presence. And the consumption is picking up.

Wow Momo is in discussions with ChrysCapital, L Catterton India and several other mid-market and growth equity investors for INR 1200 - 1300 crores round to fuel its expansion across India and in overseas markets such as Sri Lanka and UAE.

Subway’s India's master franchise, operated by Everstone Capital, is negotiating a deal of INR 200 - 250 crores round with growth investor Playbook Partners.

Mad over Donuts is in negotiations with US-based fund Invus Opportunities and other growth-stage investors, to raise INR 60 -70 crores for expanding its store network.

The Belgian Waffle is in negotiation with buyout-focused PE firm Arpwood Partners, looking to divulge 40 - 50% stake at a valuation of INR 1200 - 1300 crores.

Devyani International is in discussions for a controlling stake with a homegrown mid-sized dessert chain.

Mid-market PE firm Pulsar Capital is in talks to pick up a stake in a Bengaluru-based restaurant chain offering Andhra cuisine.

NRAI has projected the domestic food services market to grow to Rs 7.76 lakh crores by FY28 from Rs. 5.69 lakh crores in FY24.

We regularly post articles to share deal overview and their implications, and it is our belief that next year onwards, the intensity of deals will increase manifold. And with it, will be a change in the business operating approach.

My view on Sector’s potential 

The food and beverage sector is leading the deal surge. As per the investment bank Equirus Capital, India’s consumer sector saw 115 M&A deals between Jan - September 2025, the highest in four years. Food and Beverage accounted for the largest share of these transactions. By value, consumer-sector deals crossed Rs 21,200 crore in the first nine months, with nearly three-quarters of the value concentrated in F&B. This dominance underscores how food has become the primary engine of deal activity within India’s broader consumption story.

Underlying this deal frenzy are strong structural growth drivers. According to estimates by Imarc Group, India’s packaged food market is expected to grow from $121.3 billion in 2024 to $224.8 billion by 2033, expanding at a compound annual growth rate of 6.5% between 2025 and 2033. The firm attributes this growth to rapid urbanization, increasing demand for convenience foods and the expansion of online food delivery platforms, which are reshaping how Indians discover and consume food.

“India's food space is a large industry with an attractive growth profile based on the shift from unorganized to organized. With an increase in disposable income and convenience-led multiple food options via food aggregators, Indians are eating out and ordering food more than before. This has given opportunity to many homegrown brands to scale. As private equity investors, our endeavor is to discover market leaders that are growing at 1.5-2 times the industry growth rate," Rajiv Batra of ChrysCapital,

The flurry of transactions, strong growth forecasts and supportive consumer trends show why India’s food and beverages sector has become the focal point of deal making. Strategic buyers see opportunities to build scale and defend market share, while financial investors are drawn by growth prospects. As consumption patterns continue to evolve and organized players gain ground, the intensity of deal activity suggests that India’s food space will remain one of the most hotly contested sectors for investors.